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John Maynard Keynes
John Maynard Keynes, 1st Baron Keynes,(5 June 1883 – 21 April 1946), was a British economist whose ideas have fundamentally affected the theory and practice of modern macroeconomics and informed the economic policies of governments. He built on and greatly refined earlier work on the causes of business cycles, and he is widely considered to be one of the founders of modern macroeconomics and the most influential economist of the 20th century. His ideas are the basis for the school of thought known as Keynesian economics and its various offshoots. Tossup Questions # A recent book by Akerlof and Shiller titled for an idea of this man, Animal Spirits, argues that psychological forces spurred the financial crisis. He rejected the neutrality of money, arguing that inflation can increase consumption in the short run due to price misperception. John Hicks's IS/LM model mathematically summarizes the ideas of this man, whose namesake branch of economics created the economic "multiplier" and believes in the efficacy of fiscal policy. For 10 points, name this British author of the General Theory of Employment, Interest, and Money. # To illustrate his points, this man used the example of a beauty contest run by a newspaper and a parable about bananas that are only good for a short time. This man stated that the interest rate that made the value of future returns on a capital good equal to its purchase price was the marginal efficiency of capital. The Absolute Income Hypothesis is based on this man's consumption function. This man also introduced the notion of aggregate demand. The author of The General Theory of Employment, Interest, and Money, for 10 points, name this economist who advocates an active government in the economy through actions such as stimulus spending during a deficit. # This man claimed that involuntary unemployment disproved Say's Law. This economist first argued that employment and output were determined by fluctuations in aggregate demand, rather than in factor prices, suggesting that factor prices were "sticky." John Hicks developed the IS/LM model based upon this man's theories. A graph of desired total spending is known as the namesake cross of this developer of the multiplier theory. For 10 points, name this economist, the author of The General Theory of Employment, Interest and Money. # This man's work was critiqued by Henry Hazlitt in the book The Failure of the New Economics. His macroeconomic theory is modelled by John Hicks' IS/LM model. He predicted that the Treaty of Versailles would lead to disastrous consequences in The (*) Economic Consequences of the Peace. For 10 points, name this British economist who wrote The General Theory of Employment, Interest and Money and is the namesake of the mainstream school of macroeconomic thought. # This determined the relationship, when not governed by Say's Law, of employment and output in his principle of effective demand. He depicted the equilibrium level of GDP in his namesake cross diagram, and criticized Churchill's reintroduction of the gold standard. He proposed the founding of an International Clearing Union and the bancor, a world currency. Known for his condemnation of the Treaty of Versailles in his work The Economic Consequences of the Peace, for 10 points, name this British economist who argued for high government spending and wrote General Theory of Employment, Money and Interest.